Large organizations often require employees to collaborate with others who may see the world differently. Yet, little is known about whether misalignment in personal values with managers or colleagues affects performance. Using survey and administrative data from a world-leading bank, we find...

Over the past decade, the six largest Canadian banks held an increasingly greater share of their assets and liabilities abroad, linking the Canadian banking system more closely to economic and financial developments elsewhere in the world. In 2023, the share of Canadian banks' foreign assets and...

This paper provides novel micro-level evidence that cross-border bank flows are important for households' access to credit not only in emerging markets but also in advanced economies. These foreign bank flows can drive local credit credit booms that increase bank risk. We study how the influx of...

We show corporate real effects from Covered Interest Parity (CIP) deviations, exploiting administrative data from Norway as well as CIP deviation shocks. Banks with access to U.S. money markets strongly increase short-term USD funding in response to CIP deviations. This, in turn, leads to higher...

We study whether the low interest rate environment paired with booming housing markets affected banks' foreign activities in terms of commercial and residential real estate backed lending. Using a unique dataset covering systemically relevant banks in the euro area over the period 2015-2022, we...

Global liquidity flows are largely channeled through banks and nonbank financial institutions. The common drivers of global liquidity flows include monetary policy in advanced economies and risk conditions. At the same time, the sensitivities of liquidity flows to changes in these drivers differ...

In its first ten years (2014-2023), the banking union was successful in its prudential agenda but failed spectacularly in its underlying objective: establishing a single banking market in the euro area. This goal is now more important than ever, and easier to attain than at any time in the last...

In its first ten years (2014-2023), the banking union was successful in its prudential agenda but failed spectacularly in its underlying objective: establishing a single banking market in the euro area. This goal is now more important than ever, and easier to attain than at any time in the last...

This paper provides insights into the determinants of currency choice in cross-border bank lending, such as bilateral distance, financial and trade linkages to issuer countries of major currencies, and invoicing currency patterns. Cross-border bank lending in US dollars, and particularly in...

We develop a structural model of the global banking network and analyze its role in facilitating risk sharing and amplifying shocks across countries and over time. Using bilateral international lending data, we uncover significant heterogeneity in the willingness and capacity of banks to provide...

The Turkish economy has encountered significant shocks in interest rates and foreign exchange along with global risks in recent years. These shocks had an impact not only on the real sector but also on the banking sector's returns, depending on the ownership structure. This study examines the...

We study how terminated correspondent banking relationships affect international trade. Drawing on firm-level export data from emerging Europe, we show that when local banks lose access to correspondent services, their corporate clients experience significant export declines. This trade...

In einer panel-ökonometrischen Studie von 6 international operierenden Banken über 37 Quartale untersuchen wir vier verschiedene Digitalisierungsmaßnahmen hinsichtlich ihres Effekts auf den Return on Equity. Ein Fixed-Effects-Modell mit einem R² von 36% zeigt auf, dass der RoE bei Vorliegen...

This paper examines the effect of foreign bank entry on local firms’ social performance. We find that foreign bank entry is associated with better performance of local firms in regard to corporate social responsibility (CSR). The effect is more pronounced when firms face less favorable...

Decentralized finance (DeFi) has emerged as a credible challenger in the financial industry's current norms. It employs cutting-edge solutions to decentralize banking and industry concepts and provide financial services to anybody, everywhere. It also intends to improve financial inclusion by...

Under Basel III, the current international banking regulation, banks must maintain two Tier 1 capital ratios that treat risky assets differently. The Basel Committee uses the critical average risk weight (CARW) framework developed by the Bank of England to determine which ratio is the binding...

Global liquidity refers to the volumes of financial flows—largely intermediated through global banks and non-bank financial institutions—that can move at relatively high frequencies across borders. The amplitude of responses to global conditions like risk sentiment, discussed in the context...

The state council initiated the Regulations on the Administration of Foreign Banks (Reg AFB) in 2015, which significantly lifted the barriers of foreign banks’ operation in RMB business. Employing two-way fixed effect model, we find Reg AFB led to significant decrease in firms’ cost...

The Credit Suisse crisis in 2023 generated important variations in the stock market, and a lot of discussions about the potential contagion effects with other systemic banks. We use the Extended Joint Connectedness measure based on Diebold and Yilmaz (2008, 2012) approach to study this effect....

This paper investigates the effects of foreign ownership on bank liquidity creation. Using a manually collected novel dataset that includes both listed and unlisted commercial banks in China during the period between 2006 and 2018, we find that foreign ownership is significantly related to lower...

We review the "climate action plans" of Global Systemically Important Banks (GSIBs) and the progress they are making toward achieving them. G-SIBs have identified the drivers of climate risk and their transmission channels to credit and other risks. Additionally, some have started to measure and...

This Study examines the impact of local bank structures on the expansion of foreign banks by combining data from China and theory analysis of domestic and foreign bank competition. Results show that when foreign banks face banking structures with a higher proportion of banks with low funding...

This paper explores how foreign bank penetration impacts the Vietnamese banking sector. By utilizing the comprehensive dataset of the Vietnamese banking system during the period from 2005 to 2020, this study provides robust evidence on the impacts of foreign bank penetration on competition and...

We examine the impact of cross-border bank flows from source countries on the lending behavior of banks located in destination countries. Separately, we investigate how this effect changes due to macroprudential policy action taken in source countries. We find that all destination-country banks...

In 2011, the largest banks were designated as Global Systemically Important Banks (GSIBs) by the Financial Stability Board. While these banks face closer supervision and additional constraints, they also benefit from an implicit guarantee from their governments. The changed environment for these...

Purpose – The reason for this examination is to check the feasibility of anti-money laundering (AML) regulation implementation in foreign and local banks in Pakistan. Money laundering is most prevalent in the banking sector, as banks deal with the money’s deposition, withdrawal, and funds...

Current theories of financial regulation suggest expanding rules-based formal state intervention to promote international banking stability. Such policy solutions should then be global in scope. This article instead argues that principles-based informal co- and self-regulation through domestic...